Costco Is Making Major Changes to Its Online Buying Experience, According to the Company's Chief Financial Officer Costco is exploring what new tech can do, including "expanded" buy-online-pickup-in-warehouse options and adding more drones and robots.

By Emily Rella Edited by Melissa Malamut

Key Takeaways

  • Costco's CFO Gary Millerchip said the company is making technological improvements, including "expanded" online buying options and adding larger electronics to store shelves.
  • The retailer recently increased membership fees for the first time in over five years.

Opinions expressed by Entrepreneur contributors are their own.

Though Costco's business model thrives on a brick-and-mortar retail experience, the company isn't shying away from making technological improvements to its current online experience.

During a Q3 2024 earnings call with investors, CFO Gary Millerchip fielded questions about how the chain will be "more aggressive" with technological investments, from expanded buy online-pickup-in-warehouse options to "deploying more technology" in stores, including the use of drones and robots in the warehouses.

Related: Costco CEO Raises Hourly Wages for Employees

"We are working on all those aspects right now. We're rolling out an expanded buy-online-pickup-in-warehouse," Millerchip said. "That is always going to be limited in scope based on the volume in our warehouses that we have."

Millerchip also said that the chain is working on expanding the scope of items that it sells, including larger electronics.

"We can't expand to all categories, but we're expanding as we currently speak in televisions and other electronic items that are there. And so, yeah, we see that as a real opportunity for us," Millerchip said. "Technology is going to be one of our key priorities moving forward … You know, we see a great opportunity for data. We have expanded our group there. We have a significant program now with retail media."

Related: Costco's CEO Says This Product Is the 'Most Important Item We Sell'

Earlier this month, the company increased membership prices for the first time in nearly five years just one day after announcing that hourly wages for certain employees would increase by $1.

Costco was up over 45.5% year over year as of Monday morning.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'More Soul-Crushing Than Ever': Popular Hiring Platform Finds Around 20% of Its Postings Were 'Ghost Jobs'

Is that job listing too good to be true? There's a one-in-five chance that it might be.

Growing a Business

5 Risk-Taking Lessons From Founders Who Bet Big and Won

Discover the bold moves and strategic risks that catapulted these entrepreneurs to success. Learn how their fearless decisions can inspire your own path to growth.

Business News

'Masculine Energy Is Good': Mark Zuckerberg Tells Joe Rogan He Thinks Companies Need More Aggression

On the most recent episode of "The Joe Rogan Experience," Meta CEO Mark Zuckerberg said corporate culture has become "neutered."

Business Models

I Transformed My Company With Employee Ownership — Here's Why You Should Too

As a business leader who recently decided to transition to an employee-owned business model, I'm sharing insights into the vast benefits for both the business and employees based on first-hand experience.